Pro: This Is When To Buy FedEx

Pro: How to play FedEx Earnings

Federal Express is set to report third quarter earnings before the bell on Wednesday, and one "Fast Money" trader thinks this is the perfect opportunity to buy the stock.

Since November, FedEx has been stuck in a trading range between $167 and $183, but according to Guy Adami if FedEx reports improved margins this week, the stock could break out above $183.

While FedEx's second quarter earnings per share and revenue came in light, Adami points out "a hidden gem" that could repeat itself in next week's earnings report. Both FedEx Express and FedEx Freight saw operating margins surge, which drove total operating margin up to 8.5 percent versus 7.3 percent a year prior.

"FedEx stands to benefit and it may manifest itself in improved margins," said Adami. "I would get long the stock at current prices, looking for a breakout above $183.00. I would pull the rip cord and stop out on any close below $167.00."

RBC Capital Markets Analyst John Barnes is confident FedEx will deliver in Q3 as well but remains cautious long-term.

"We expect FDX to put up strong results, but we believe the headwinds from foreign exchange and rising fuel costs will likely prevent the company from raising its full-year outlook," said Barnes in his earnings preview note last week.

"In fact, we believe management will be forced to tighten the FY/15 guidance range and we believe any downward revision to the upper end of the range could put pressure on the shares," Barnes added.

Thomson Reuters is estimating FedEx's EPS of $1.87 and revenue of $11.79 billion.